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Thread: Montana LLC - CO, IL & OH

  1. #11
    Joe Cannarozzi Guest

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    With the HUGE tax savings by doing a Montana LLC, before purchase, one could take a small fraction of the savings and invest in some acreage there and establish residency (that alone would probably be a great investment) and then one could tell the local tax guy where to go.

    Heck Ray, even not concidering the initial sales taxes, you could probably get at least a couple acres for what you would otherwise be paying for one years registration in Cal.

    I think a gathering in Montana is in order. This type of leadership needs to be rewarded.

  2. #12
    Join Date
    Nov 2006
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    178

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    This LLC thing has the converters concerned, they feel if it goes away so will many sales.

    I heard this just last week.

    Richard Beecher
    02 Marathon XLII 45
    96 Vogue XL 40 for sale

  3. #13
    Just Plain Jeff Guest

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    Of course, this goes to another level of mis-understanding. A guy bought a new coach. He LIVES in Montana. Owns a mining company there, was BORN in Montana. Bought the coach to USE in Montana.

    Of course, he got the most grief in registration recently than anyone else.

    Go figure.

    Lew?

  4. #14
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    Jan 2006
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    Having witnessed how hard up states with a spending habit (can anyone say New York?) relentlessly chase every dime, it is only a question of time before the Montana thing is over. I have said this before and been criticized, but despite everybodies' protestations the Montana LLC is simply a paper device to EVADE taxes. If the LLC had a business purpose any owner could thumb his nose at any state that tried to collect sales taxes.

    Anybody can set up a business anywhere he chooses. If that business has a reason to own a coach and can prove it is a legitimate business you have not ony a means to AVOID paying a sales tax on the coach since Montana does not collect sales taxes, but it is probable if the business purpose generates revenues and the coach is used to generate those revenues that you can take the depreciation on the coach for tax purposes. That is like paying 50 or 60% of the price of the coach. What a deal.

    If an owner insists on going the Montana LLC route, despite the risks, then the best way to do so would be to stay under everybody's radar. Use a Montana mailing address, register the toad in Montana, get a Montana driver license, and don't park the coach where it is visible regularly in another state.

  5. #15
    Join Date
    Nov 2006
    Location
    Concord, Ohio
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    285

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    Quote Originally Posted by Jon Wehrenberg View Post
    Having witnessed how hard up states with a spending habit (can anyone say New York?) relentlessly chase every dime, it is only a question of time before the Montana thing is over. I have said this before and been criticized, but despite everybodies' protestations the Montana LLC is simply a paper device to EVADE taxes. If the LLC had a business purpose any owner could thumb his nose at any state that tried to collect sales taxes.

    Anybody can set up a business anywhere he chooses. If that business has a reason to own a coach and can prove it is a legitimate business you have not ony a means to AVOID paying a sales tax on the coach since Montana does not collect sales taxes, but it is probable if the business purpose generates revenues and the coach is used to generate those revenues that you can take the depreciation on the coach for tax purposes. That is like paying 50 or 60% of the price of the coach. What a deal.

    If an owner insists on going the Montana LLC route, despite the risks, then the best way to do so would be to stay under everybody's radar. Use a Montana mailing address, register the toad in Montana, get a Montana driver license, and don't park the coach where it is visible regularly in another state.
    Jon,

    Even if you owned the business, if the coach is not for resale as your primary business or you have a dealers license you still have to pay sales tax at least in Ohio. Also remember that if you depreciate the coach as a business expense you have to capture the profits and pay a capital gains tax when you sell the coach.

    I have a Montana address, my coach is stored inside in my garage and my trailer has a Montana plate and yes I agree with you that the Montana LLC will come to an end. However, I believe it is tax avoidance not evasion, but it would probably cost more to depend that position than to pay the taxes and fine.
    John Knollmaier
    Still Dreaming!

  6. #16
    Join Date
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    I'm not suggesting the buying and selling of a coach. I'm suggesting a business in which the use of the coach is justified, such as consulting, sales, seminars, etc. Anything that can reasonably explain the use of a coach. I used our first coach to do about 20 seminars a year for our major customer, plus I used it to transport me and the entire booth display for trade shows for our company's line of campground equipment. We were on the road a lot for purely business purposes, but we still got to see and enjoy a lot of the country while tending to business.

    I paid the NY sales tax, and the TN sales tax on the current one, but I was able to charge off travel expenses and depreciate the coach.

    If you are going to try to cheat the taxman you need a very good reason because as state budgets increase they will come after every opportunity to grab taxes, and if they can prove your tax avoidance was in fact evasion then there are penalites involved.

  7. #17
    Join Date
    Nov 2006
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    Menifee California
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    994

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    Big AMEN on that Joe!!!

    Quote Originally Posted by Joe Cannarozzi View Post
    I think a gathering in Montana is in order. This type of leadership needs to be rewarded.

  8. #18
    Join Date
    Oct 2006
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    FLL , DRO (FT.Laud. Fl., Durango, co.
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    You couldn't have said it better, Jon. We have seen many customers get caught trying to use a tax scam, I mean a tax loophole to purchase a large boat without paying the sales tax. I have seen many of them use an offshore angle to avoid the 6% Fla. tax and then a year or so later, they get caught and wind up paying the 6 plus 6 or 12% tax and penalty. It's just part of the purchase price. None of us like to pay any taxes, especially those that penalize our hard work. And who can enjoy seeing our "tax dollars at waste" like the current sewer project here in Lauderdale? We simply decided to pay the tax now and not look over our shoulder. Probably not what some fancy lawyer or finance man would do, but hey, the same folks tried to get me to refinance some property with a sub-prime loan!!!!!

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